Indian Equity markets trade in fine fettle in early deals on Monday

Indian equity benchmarks have made a gap-up opening and are trading in fine fettle in early morning deals with the gains of over 0.75 percent on Monday that lifted both Sensex and Nifty above crucial 27,500 and 8,250 levels respectively, tracking positive trend seen in other Asian markets. Broader indices also trading in line with larger counterparts were up with gains in the range of 0.60-0.80%. Sentiment was up-beat with Finance Minister Arun Jaitley’s statement on the basis of policy changes along with a good monsoon that the path to 10 percent growth in Indian economy is not impossible. Further, appreciation in Indian rupee against dollar also supported the sentiment. The rupee strengthened by six paise to a fresh one-month high of 63.49 against the dollar in early trade on Monday, on persistent selling of American currency. However, gains remained capped on reports that foreign portfolio investors (FPIs) sold shares worth a net Rs 106.12 crore during previous trading session on Friday as per provisional data released by the stock exchanges.

In scrip specific development, Indiabulls Real Estate was trading higher after the company said its promoters will buy 10% stake in the property development company for Rs 538 crore.

On the global front, the US markets ended lower on some global concerns from China and Greece. Asian market were mostly trading in green after Greece presented to its creditors new proposals on reforming its bailout, fuelling hopes of an end to a five-month deadlock, averting a default and possible exit from the eurozone.

Back home traders were seen piling position in Bankex, Realty, Bankex, Metal, Consumer Durables and Healthcare, while selling was seen in Oil & Gas. The market breadth on BSE was positive in the ratio of 1144: 478, while 77 scrips remained unchanged.

The BSE Sensex is currently trading at 27535.10, up by 218.93 points or 0.80% after trading in a range of 27417.03 and 27550.65. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.61%, while Small cap index was higher by 0.78%.

The gaining sectoral indices on the BSE were Bankex up by 1.66%, Realty up by 1.34%, Metal up by 0.96%, Consumer Durables up by 0.79% and Healthcare up by 0.76%, while Oil & Gas down by 0.03% was the lone losing index on BSE.

The top gainers on the Sensex were Axis Bank up by 1.99%, HDFC Bank up by 1.82%, ICICI Bank up by 1.69%, Tata Steel up by 1.51% and Sun Pharma Inds. up by 1.39%. On the flip side, Wipro down by 1.47%, ONGC down by 1.14%, Bharti Airtel down by 0.82% and Reliance Industries down by 0.55% were the top losers.

Meanwhile, monsoon defying the El Nino effect is gathering pace with farmers benefitting from an increase in monsoon rains. IMD Director has though said that monsoon is expected to be normal in June boosting sowing of kharif crops but there are concerns about pick up in rainfall in the next month. Forecast of normal rains in June would encourage sowing of the kharif crop, particularly in central India

A better-than-expected start to the monsoon in an El Nino year has eased concerns of dry weather fuelling inflation in the country. Rainfall has been 11 percent more than the average till June 18 and farmers in irrigated areas have started sowing. The progress in monsoon will help sowing to gather pace in rainfed areas. Though, IMD has warned that South-West monsoon rainfall will be weaker in July, when it is expected to be 92 percent of the long-period average, and in August, when it will be 90 percent.The met department has been predicting the monsoon's progress into some more parts of central and east India for the past few days. But barring Kerala, coastal Karnataka and some areas of the Northeast, rains have been good in regions covered so far by the rain system.

Agriculture Ministry's data has revealed that till last week of the kharif season, farmers have sown various crops like paddy in 75.10 lakh hectares compared with 82.27 lakh hectare in the year-ago period. Farmers depend on the monsoon, which accounts for more than 70% of annual rainfall, to grow crops and produce hydro- electricity, and for drinking water.

The CNX Nifty is currently trading at 8290.45, up by 65.50 points or 0.80% after trading in a range of 8257.40 and 8293.20. There were 41 stocks advancing against 9 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 2.06%, HDFC Bank up by 1.87%, Yes Bank up by 1.86%, Kotak Mahindra Bank up by 1.71% and ICICI Bank up by 1.51%. On the flip side, ONGC down by 1.27%, Wipro down by 1.02%, Bharti Airtel down by 0.96%, Idea Cellular down by 0.60% and Reliance Industries down by 0.51% were the top losers.

Asian markets were mostly trading in green; KOSPI Index increased 8.75 points or 0.43% to 2,055.71, FTSE Bursa Malaysia KLCI increased 10.73 points or 0.62% to 1,732.50, Straits Times increased 23.99 points or 0.73% to 3,324.95, Hang Seng increased 102.54 points or 0.38% to 26,863.07, Taiwan Weighted increased 136.9 points or 1.49% to 9,355.27 and Nikkei 225 increased 172.38 points or 0.85% to 20,346.62.

On the flip side, Jakarta Composite decreased 14.56 points or 0.29% to 4,970.44.

China Stock exchange is closed on account of 'Dragon Boat Festival' holiday.